Way back at the end of February we wrote about the new payroll tax withholding guidelinesissued by the IRS. Since that time, the IRS has issued a new Form W-4, more information, and calculators that can help in determining payroll tax amounts to be withheld. Because of the sweeping changes in other parts of the tax law, the IRS is encouraging employees to be proactive – and are even providing some tools to do that. (more…)
I was really excited for a colleague who got a big contract that was going to expand his company this year. He was excited because his small business would no longer be just a local business, but would now be a business that worked nation-wide. We celebrated with a congratulatory lunch. It wasn’t but a couple of weeks later that he called and was obviously down. I was afraid he’d lost the deal. But no, he said it was worse – it was about payroll taxes. (more…)
Are you an employer or employee who likes to get that paycheck in your hand every pay period? There are people who like that trip to the bank to make deposits. However, they may be putting themselves – and their employers – at risk by getting that paper check.
When paychecks go missing…
It’s not an uncommon event to have paychecks stolen. One small business owner found himself in a pickle. A man simply parked his car at a hotel to have dinner with a friend and when he returned, the bag containing the checks was gone. The thief may not have even known he was stealing checks because they were completely out of sight in a bag. But in any event, the employer now has a big problem that has to be resolved right away. Employees are waiting for their wages.
Replace your paycheck system and improve processes
Entrepreneurs have to take leadership roles and sometimes that means dictating processes that ensure safety and security – like with payroll. And most often in today’s workplace, payroll is paid in one of two ways:
Automatic deposit into employee bank accounts
Credit to a payroll card and used by the employee
Small business owners have enough to think about to keep the workplace running. In addition to using automatic deposits, more and more employers are outsourcing their payroll to a payroll provider. Not only does hiring out for payroll services ensure accuracy and efficiency, it keep the budget in line.
Employers are realizing that it is just not worth the risk when dealing with taxes and employee wages to keep it in house. The payroll fees are far outweighed by the costs of in-house processing and definitely as protection against error in payroll taxes, reporting and making deposits.
Streamlining the payroll process so that it can be handled virtually from start to finish eliminates the potential of having paychecks stolen from the back of a car during an errand run. And, with it being automated, it can be handled efficiently, which means it is cost effective.
I am opening a new sales location for The Payroll Department in Zionsville!
As all of my clients already know, The Payroll Department recently completed a complete conversion to a new software that allows us to better serve them. It was a huge process and one that offers complete transparency and accessibility to our client employers and their employees.
While it has been a challenge to get every little detail in place, it was well worth every hour and every bit of effort. We now have more capabilities and options than ever before. (more…)
One of our new clients explained his reason for outsourcing his payroll during one of the initial meetings he had with me here at The Payroll Department. We often hear how small business owners are eager to have someone else take care of payroll, payroll taxes and the payment and reporting of it to the government. They want to be sure they don’t make a mistake and end up paying out fines and penalties for an oversight. However, when Sam* talked about the problems of handling payroll in-house with his small business, he made no mention of those issues.
He talked about whispers and personnel problems.
Whispers between co-workers may indicate an issue. Co-workers spend more time together on a daily and weekly basis than most families. Certain people become close and sometimes, cliques or unofficial groups are formed. When employees become close, they share confidences and confidential information.
Confidentiality inside organizations, especially small business operations, can be a real challenge. When personal issues become community knowledge employees can be embarrassed, ridiculed and judged. And those type of situations can have a direct impact on production – quality and quantity – and therefore, the bottom line.
Sometimes alliances are divisive and “sides” are taken. That’s when things tend to spiral downward and confidential matters become valuable collateral.
One of the most difficult areas to manage confidentiality is in payroll. It’s not just keeping pay rates confidential, but keeping personal matters such as garnishments for child support or other court ordered payments private.
It’s not uncommon to discover that private information is shared with the general office in the form of gossip, whether it is intended to be malicious or not, gossip always ends up hurting the organization.
Outsourcing your payroll is one easy and affordable way to manage the confidentiality of payroll. In fact, at The Payroll Department it is a policy to only discuss payroll matters with specified people within an organization. We respect the private matters of each individual on your payroll as well as the overall payroll and payroll tax matters of your business.
Sam saw his outsourcing payroll as being a proactive step to eliminate the potential of divided employees. He said there are enough issues with personalities without adding the potential for explosive situations around very personal matters in the workplace.
We like his thinking and I bet his employees would like it, too, if they realized he was working to protect them. But he keeps that confidential.
I recently gained a new client through what might seem one of the oddest situations. The client showed up at my office and I could tell she had obviously been crying. Sporting moist eyes and blotchy patches on her cheeks and neck, I could tell the emotion behind the tears was strong. The story she told made me cringe – and it wasn’t even about payroll or payroll taxes. Not only did I cringe because it was so painful, but also because it was one that I have heard all too often. (more…)
Small business owners would probably say that there is nothing simple or easy for them when they are the entire human resources department of their business.
But then along comes The Payroll Department and things do get simpler and easier. That’s because I have been in their shoes and I know entrepreneurs and small business owners don’t need more to complicate their already overflowing basket of tasks to do. (more…)
The times they are a-changin’ and that is no more evident than with the implementation of the Affordable Care Act (ACA). The leadership of every small business and workplace has to consider the reforms and new requirements taking effect. Needless to say, small business owners with employees have a lot to think about. (more…)
When Indiana Department of Revenue (IDR) tells you money is owed, it would be natural to assume that you owe it. But did you know that it’s possible with the volume of payroll tax returns (WH-1’s) that state departments of revenue get, it’s not uncommon that mistakes may and can be made? Are you or your payroll provider keeping track of your small business taxes?